X received a cheque of Rs. 10,000 from Y in settlement of dues of Rs. 10,500. The cheque was dishonoured. The reversal of discount allowed by X will be recorded in:
Answers
Answer:
customer account was credited, hence if the cheque bounces, a reverse entry has to be passed by debiting the customer account and crediting the bank account.
Answer:
The correct answer to this question is a cash book.
Explanation:
Given - X received a cheque of Rs. 10,000 from Y in settlement of dues of Rs. 10,500.
To Find - The reversal of discount allowed by X will be recorded in:
Since the customer account was credited, a reversal entry must be made by debiting the customer account and crediting the bank account and cashbook in the event that the check fails.
Accounting keeps a detailed record of all cash transactions in a cash book. A cash account, which is an account that appears in a general ledger, is distinct from this. A cash book may function as both a diary and a ledger whereas a cash account is more organized like a ledger.
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